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You use a Windows Vista or Windows Server 2008-based computer to connectto a server that has the Hyper-V component installed. When you try to create a new virtual machine from the management console, you receive the following error message:
The Server encountered an error while creating <virtual machine name>
This problem occurs because the default directory points to the Universal Naming Convention (UNC) path of the Hyper-V server. This occurs even if you log on by using credentials that have Administrator privileges on the local computer and the Hyper-V server.
Note The default directory is as follows: "\\<name of Hyper-V Server>\<drive Letter>$"
To resolve this problem, change the path to a local path such as <drive letter>:\Path.
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